Documentation/How Tos/Calc: RECEIVED function

RECEIVED

Calculates the amount received at maturity for a zero coupon bond.

Syntax:

RECEIVED(settlementdate; maturitydate; purchasevalue; discountrate; basis)

settlementdate: the settlement (purchase) date of the bond.

maturitydate: the maturity (redemption) date of the bond.

purchasevalue: the value of the bond at purchase.

discountrate: the discount rate of the bond.

basis: is the calendar system to use. Defaults to 0 if omitted.

0 - US method (NASD), 12 months of 30 days each

1 - Actual number of days in months, actual number of days in year

2 - Actual number of days in month, year has 360 days

3 - Actual number of days in month, year has 365 days

4 - European method, 12 months of 30 days each

RECEIVED calculates the amount returned at maturity for a discounted bond which pays no interest. It returns:

purchasevalue / ( 1 - days_difference/days_in_year),

where days_difference is the number of days between settlementdate and maturitydate, and days_in_year is the number of days in a year, both calculated according to the calendar system basis.

As the formula takes no account of compounding, this function is most reliable for periods of less than a year. See Derivation of Financial Formulas for a formula review.

Example:

RECEIVED("2009-06-01"; "2009-12-31"; 10000; 5%; 1)

returns approximately 10300.5503.

Issues:

• Calc and Excel do not agree on the number of days in a year in basis 1. It is not clear which is theoretically correct. Calc uses the number of days in the year containing settlementdate. See Issue 93527!
• Excel appears to have a bug for basis 4.